Answer the Following Questions Using the Information Below:
the Fortise

question 163

Multiple Choice

Answer the following questions using the information below:
The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2015 were as follows:
$$\begin{array}{l}\begin{array} { l r r r } \text { Static Budget } & \text { Victor } & \text { House-Mate } & \text { Total } \\\hline \text { Number sold } & 6,000 & 24,000 & 30,000\\\text { Contribution margin } &\$ 1,560,000 & \$ 3,120,000 &\$ 4,680,000\\\\\text { Actual Results } & \text { Victor } & \text { House-Mate } & \text { Total } \\\text { Number sold } & 5,000 & 35,000 & 40,000 \\\text { Contribution margin } & \$ 1,400,000 & \$ 4,130,000 & \$ 5,530,000\end{array}\end{array}$$
-What is the total sales-quantity variance in terms of the contribution margin?

• A) $200,000 unfavorable
• B) $540,000 favorable
• C) $960,000 unfavorable
• D) $1,560,000 favorable

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Definitions:

Indirect Approach

A method of communication where the main point is gradually introduced, often used for sensitive topics.

Alternative Ideas

Creative or different thoughts, concepts, or approaches aside from the mainstream or original plan.

Subordinate

An individual who works under the direction of someone else within an organization, often in a lower position or rank.

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A sentence type that combines two independent clauses (complete thoughts) using a conjunction or punctuation mark.